As the Kremlin prepares to roll out its latest financial innovation — the digital ruble — Russians are increasingly turning to a more old-fashioned alternative: cash.
Households and businesses have added 2.1 trillion rubles ($25.3 billion) to their cash holdings so far this year. That marks the largest increase recorded since the start of the war, surpassing the 1.8 trillion rubles ($21.7 billion) added between January and August 2023.
Back then, cash demand was driven by Russians fleeing the country amid military mobilization, panic during the short-lived Wagner mutiny and, reportedly, off-the-books payments to mercenaries fighting in Ukraine.
According to projections by Sberbank, Russia’s largest lender, cash in circulation could rise by 3.8 trillion rubles ($45.8 billion) over the course of 2026, making it the largest annual increase on record.
Much like in 2023, several factors are driving the current rush to cash.
